Mark Jones, head of Friends Provident protection proposition recently made some comments about critical illness cover. He said, “We need to reach out to customers and give them the facts, recommending products that are relevant to the here and now.”
According to Friends Provident, Critical Illness Cover may well be the product to provide them with the opportunity to do so….
Mark points out that customers may not realise that debilitating critical illnesses are increasing. At the same time, advances in medicine mean that survival rates are higher than ever before. For example cancer death rates in the UK have fallen by 11% over the last ten years1.
These figures mean that more people are surviving critical illnesses which also means that many of them have to cope with the long term effects of those illnesses. Many people cannot return to work for a considerable amount of time, if at all. Lifestyles are also effected too. The National Statistics body cites that the number of people reporting restricted activity due to illness doubled from 1972 to 1996, and the proportion has remained relatively stable since2.
Critical Illness Cover is obviously a product that can protect people against these circumstances.
Friends Provident realises that Critical Illness Cover has had negative press in the past, which has obviously deterred people from taking up the cover. However, Friends Provident have taken positive steps to restore clients confidence in their Critical Illness Cover:
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Friends Provident pioneered the stance that the Association of British Insurer’s initiative adopted for non-disclosure. This aimed to help clients who have innocently disclosed errors on their application, so Friends Provident could pay a proportionate or even sometimes the full amount of their claim;
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Friends Provident’s comprehensive and user-friendly application forms, intelligent online eSelect system and the underwriting support they provide have all contributed to falling rates of non-disclosure;
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Defintions have been made clearer. Clients therefore have a better understanding of the product they are taking up; and
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Recent reprices have made Critical Illness Cover more affordable, which makes it even more relevant in these financially difficult times.
Friends Provident believe that these changes, combined with more communication about the benefits of the product, are fundamental steps forward to restore clients confidence in this product.
Sources:
1 www.heartforum.org.uk
2 www.statistics.gov.uk